State regulators have made it easier for homeowners and businesses who want to use solar power. The Public Utilities Commission on Tuesday approved a settlement between utilities and renewable energy organizations that, among other things, will eliminate costly studies that had been required before a photovoltaic system could be hooked into the main electrical grids on Oahu, the Big Island and in Maui County.
Hawaiian Electric Co. had required solar companies to do expensive “interconnection studies” if their systems would exceed a 15 percent threshold for renewable energy on the grid. Solar companies have argued that the threshold essentially acts as a ceiling for the solar industry. Investors and homeowners who want to install solar panels are reluctant to shell out what can be thousands of dollars for a study with no assurance that Hawaiian Electric will permit the project to proceed.
The electric utility has argued that the interconnection studies are important to ensuring the stability of its electric grids and making sure that there aren’t power outages. The 15 percent level has also been the industry standard across the country.
This week, the Public Utilities Commission streamlined the process. New rules spell out the steps and timelines for the project review process and under certain circumstances developers won’t be required to conduct an interconnection study.
The rules apply to what are called “distributed energy” projects, such as rooftop solar and small-scale wind projects, but the solar energy will be primarily effected.
“It’s a modest but important step in the right direction,” said Mark Duda, president of the Hawaii Solar Energy Association.
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